Worst may not be over for Emami yet, analysts advise against bottom-fishing

Emami reported a revival in products where it was earlier struggling, such as Zandu Pancharishta and Kesh King

Following the dismal performance by Emami in recent quarters, its share price has fallen 30 per cent in the last six months, against a 3-4 per cent fall in the BSE FMCG and Sensex indices. Given Emami’s December quarter (Q3) numbers, things may not change significantly. Net sales grew 7.1 per cent year-on-year (YoY) to Rs 811 crore and net profit (excluding exceptional items) remained little changed at Rs 147 crore in Q3 — a tad lower than the Street’s expectations of Rs 815 crore and Rs 149 crore, respectively.

The lower sales growth was on account of subdued volume growth